DWP issues update and says 'no tax credits for 2025'

The DWP has issued an update to everyone on tax credits as it is confirmed they were being scrapped. People will no longer be able to claim tax credits from next year.

They are being phased out as part of the switch to Universal Credit. A number of legacy benefits, including tax credits, will end as part of the transition.

Claimants who receive these legacy benefits will receive Migration Notice letters in the post. They will then have three months to apply for Universal Credit as the process will not be automatic. This will ensure they still get their payments

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It's crucial they do this to avoid disruption to their regular payments. Around 730,000 people are claiming either one or both of Working Tax Credit or Child Tax Credit.

The upcoming renewal for tax credits in July will be the last opportunity to do so. After this point, you won't be able to renew your benefit claim, Manchester Evening News reports.

DWP documents state: "Regulation 8 is designed to prevent any renewal of existing Tax Credit claims or allow a person who is claiming one tax credit (for example Working Tax Credit) to claim the other Tax Credit (Child Tax Credit), and vice versa. This will also ensure there are no Tax Credits claims from April 2025.

"Regulation 6A of the Universal Credit (Transitional Provisions) Regulations 2014 states that a person cannot make a claim to a Tax Credit. However, exceptions are provided in Regulation 6A(6) for existing Tax Credit claimants to claim the other Tax Credit and (7) for existing Tax Credit claimants to apply to renew their awards.

"These exceptions are now removed so there can be no more claims to a Tax Credit. This regulation does not come into force until 06/04/2025."

Legacy benefits are gradually being phased out one by one. People on Housing Benefit only will be the next claimants to be contacted during June.